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FX market: CBN affirms commitment to ensure liquidity

CBN pumps additional $210m into forex market

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Director, Banking Supervision, Central Bank of Nigeria (CBN), Ahmad Abdullahi, has said the regulatory authority was committed to ensuring liquidity in the foreign exchange market.

Addressing newsmen on Thursday in Lagos at the end of the Bankers Committee’s meeting, he said that the CBN has enough arsenal to handle any negative developments.“Despite the mixed signal in the global economy and the likelihood of capital outflow, the CBN is expected to deal with the situation to ensure stability in the forex market.

“Generally, the Bankers” Committee realised that the CBN has enough arsenal to ensure we have a stable exchange rate and that any demand for forex will be met to ensure liquidity in the foreign exchange market,” he said.According to him, the developments in the domestic economy are good signals for the managers of the economy to be able to withstand the foreign pressure.

“We also recognised the positive outlook of the domestic economy. We are seeing inflation coming down to 11.6 per cent. Our reserves have grown to $48billion and the Gross Domestic Product (GDP) is estimated to be 2.4per cent by the end of 2018,” he added.

Also speaking, Group Managing Director, United Bank for Africa (UBA), Kennedy Uzoka, said Nigeria was currently in a position of strength where it can deal with any negative news coming abroad.He said, “We are coming from a position of strength, a position strategy of defending the exchange rate because we have the capacity regardless of the messages we are getting from abroad that things are going to reverse. The good work at the CBN will be able to manage it.

The Committee also disclosed that the currency bilateral swap agreement between Nigeria and China would further strengthen the nation’s foreign reserves.

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